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Punjab State Industrial Development ... vs Commissioner Of Income Tax, Patiala on 4 December, 1996

The position of Hon'ble Supreme Court in the case of Punjab State Industrial Development Corpn. Ltd. Vs. CIT reported in (1997) 93 Taxman 5 (SC) is distinguishable on the facts that the issue before the Hon'ble Supreme Court was with regard to the fee paid to the Registrar for expansion of capital which is not in the present case. Moreover, we have the benefit of the letter dated 26.08.1965 where expenses listing on stock exchange is mainly for the purpose of business wholly and exclusively allowable u/s.37(1) of the Act as well. Therefore, from all angles put before us by the parties, we are of the considered view that such an expenditure incurred is wholly and exclusively for the purpose of business and is allowed as Revenue expenditure. Accordingly all the grounds of the assessee are allowed and appeal of the assessee in ITA No.5286/Del/12 is allowed.
Supreme Court of India Cites 23 - Cited by 223 - Full Document

Indore Municipal Corporation vs Commissioner Of Income-Tax on 11 March, 1997

"The above contention of the assessee can only be accepted if the DND flyover was a part of a factory premise or any other premise of the assessee, in which there were other constructions being used for the purpose of the business of the assessee and if this DND flyover was by way of an approach road to these other constructions, then may be it could have been assumed that the flyover, in such circumstances would have been entitled to depreciation as building @ 10%. However, the case of the assessee is completely different as it is claiming depreciation on the DND flyover, which is in fact just a road which is running from one end to another, connecting Delhi and Noida. Considering these facts, the ratio of the judgment delivered by Hon'ble Supreme Court in the case of Indore Municipal Corporation Vs. CIT 247 ITR 803 is fully applicable in the case of the assessee wherein it was held that expenditure incurred by the assessee to construct metal road on trenchinq around was not a revenue expenditure and the assessee was not entitled to depreciation on the amount of the cost of construction of such roads. Thus, it has been held by the Hon'ble Supreme Court that roads by themselves would nat constitute building, and if there is' no canstruction except the rood, meaning thereby, if there are no other buildings or factory premises or any other commercial complexes associated with that road, then depreciation cannot be allowed to the assessee.
Supreme Court of India Cites 3 - Cited by 10 - S C Agrawal - Full Document
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